MEXICO CITY/MONTERREY, June 27 (Reuters) - Shares of Mexicanhomebuilder Sare rose sharply on Wednesday after itemerged an investment firm is interested in buying the company.

Sare shares climbed as high as 35 percent during the day astalk about a possible deal swirled before closing up 19 percentat 1.37 pesos per share.

Mexico's third largest homebuilder did not deny the rumorsin a statement to the stock exchange and, in a call with Reutersafter the market closed, Boston-based Beamonte Investmentsconfirmed it was considering an offer for Sare.

"We are in the process of analyzing this, we are looking toretain a investment bank to look at opportunities," said LuisTrevino, managing director at Beamonte, which has $1.2 billionunder investment.

Website fundsamerica.com had reported that Beamonte plannedto make an offer of $100 million for Sare.

Trevino said information in media reports was very prematureand Beamonte has not even had contact with the Mexicanhomebuilder.

Sare, which specializes in urban housing, reported revenueof 402 million pesos ($29.43 million) in the first quarter of2012.

Sare said in the statement that it is focused on theoperation of its business and selling non-strategic assets toreduce debt. Nobody from the company was available to comment.

Earlier on Wednesday, trading in Sare's shares was brieflysuspended twice, a standard procedure from the Mexican stockexchange whenever shares show very sharp increases or declineswith no apparent cause.($1 = 13.6605 Mexican pesos)